LABOR has debts of $11.9 million while the Liberals are $15 million in the red on the eve of federal election season, the latest returns to the Australian Electoral Commission reveal.

Bob Katter's Australian Party reported debts of nearly $940,000, but has enjoyed the support of some high-profile donors including James Packer, who chipped in $250,000 last financial year to support it.

Mr Katter, who has vowed to contest every lower house seat at the September 14 federal election, also received donations of nearly $200,000 from gun clubs and retailers.

The returns, released on Friday, provide an insight into how the political parties were faring at the end of the 2011-12 financial year.

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The Liberal Party had total debts of $15.1 million, down from $15.5 million a year earlier, while Labor's borrowing levels dropped from $16.4 million to $11.9 million.

The Nationals were $1.3 million in the red while the Greens had $517,000 of debt.

But annual donations and payments to the major parties eclipsed their debt levels.

Katter's Australian Party received $100,000 from the Queensland branch of the Sporting Shooters' Association of Australia, $30,700 from the Queensland Firearms Dealers Association and $15,700 from the Queensland Military Rifle Club.

A further $48,455 was donated by Nioa, which describes itself as ''Australia's largest privately-owned supplier of small arms to the commercial, law enforcement and military markets''.

The national director of Katter's Australian Party, Aidan McLindon, denied the party was influenced by its gun industry supporters, saying the key policies were decided before the donations arrived. ''We're not afraid or ashamed of that whatsoever,'' he said. ''It's pretty simple and straightforward: no further restrictions on existing gun laws in Australia so there's certainly no element of further relaxations.''

Katter's Australian Party received $2.1 million in donations and other payments last financial year and reported a debt of $938,000.

The funding disclosure also reveals donations from the union movement, including $50,000 from the Electrical and Trades Union in Victoria and $50,000 from the CFMEU.

The ad man John Singleton was also a backer of the party, donating $50,000.

Mr Katter said the party was deeply appreciative of Mr Packer's ''one-off'' donation. ''We go out there and do a fair bit of begging actually. Our situation is such that we're sort of looking at ways to get $200 off 1000 people … because we haven't got much chance of getting the boondoggle from the major corporations.''

Mr Packer's donation was made on February 24 in the lead-up to the Queensland state election. A month later, Mr Packer publicly blasted an advertisement launched by Katter's Australian Party that featured a pixellated image of a topless same-sex male couple which claimed a vote for Campbell Newman in Queensland would be a vote for gay marriage. Mr Packer said at the time he admired Mr Katter's ''passion for this great country'' but he did not agree with all his policies and views ''and I certainly don't support this advertisement or his attack on Campbell Newman''.

The party recently dropped two prospective federal election candidates over anti-gay comments. Mr Katter signalled he regretted the advertisement.